Damac Properties reports net loss despite rise in revenue

Company records booked sales of AED2.3bn for 2020 as total audited revenues touch AED 4.7bn, with AED 1,039m net loss blamed on the impact of Covid-19

Damac Properties has reported a total revenue of AED 4.7bn for the year 2020, which, though higher than the AED 4.4bn recorded in 2019, came with a net loss of AED 1,039m for the financial year.

A statement from the Dubai-based property developer announcing its audited 2020 financial results also said that booked sales for the period stood at AED2.3bn compared to AED3.1bn in 2019. The company had also reported a net loss for the 2019 financial year, which, at AED 37m was much lower than 2020. Total assets for the 2020 financial year stood at AED 21.1bn compared to AED 23.8bn on December 31,  2019.

“The lasting effects of Covid-19, which has devastated economies across the globe, has understandably impacted the profit margin at Damac. With global lockdowns, travel restrictions and the dip in global travel, Dubai’s property market has been adversely affected,” said the company’s statement.

As of December 31, 2020, gross debt stood at AED 3.2bn and cash and bank balances stood at AED 4.2bn, while shareholders’ equity stood at AED 13bn. Damac delivered around 3,000 units in 2020 in developments such as AKOYA and Business Bay. During the year, the company also reached the milestone of 32,000-unit deliveries since its inception.

Hussain Sajwani, chairman of Damac, said: “2020 was indeed a challenging year for the global economy, with the travel and tourism industries particularly hit due to the Covid-19 pandemic. With the smart leadership of the UAE, we are in a far better position for economic recovery, although I still believe it will take 12-24 months for the real estate industry to fully recover.

“I truly thank our leaders for all the support they have given the UAE business community during these trying times and I also want to thank our stakeholders who have helped us achieve great things over the years, including our employees, partners, contractors, suppliers and, of course, our customers who have contributed to the success of Damac.”

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